-Why is it necessary to track actual and committed costs once a project starts?

Once the project starts it is necessary to keep track of the actual cost and the committed cost as they can be compared with the CBC. [ To keep track of he actual cost it is necessary to maintain an information system to collect data on a regular and timely basis. Such a type of system should include all the details of money spend over a period of time. Committed costs are also known as

commitments or encumbered costs. Costs are committed when a resource needed for the project is ordered. ]